Australian Olympic Committee (AOC) president John Coates delivered a stirring message on behalf of International Olympic Committee chief Jacques Rogge as the sixth AYOF officially started at the Sydney Entertainment Centre.

"Some of you will win medals - others will be less successful. But always remember one important rule: showing respect and competing fairly is more important than winning," Coates said in his message from Rogge.

"It makes you a champion in life."

The AYOF, established as a legacy from the 2000 Sydney Games, has previously showcased the likes of Anna Meares and Sally Pearson and, this year, will feature almost 1500 athletes aged under 20 from more than 30 countries.

Canoeist Jessica Fox - a silver medallist at last year's London Olympics, who won gold at the 2009 AYOF and 2010 Youth Olympics - was given the honour of declaring the AYOF open.

"This festival gives you an amazing set of opportunities," 18-year-old Fox told the crowd of athletes, which included sister Noemie.

"For most of you, I imagine your dream will be to compete in the next Youth Olympic Games and the next Olympic Games.

"This festival can be the start of that journey. I can tell you from personal experience that it is definitely possible - and I hope we can be teammates in Rio."

Befitting the youth-focused festival, which will involve 17 sports, the opening ceremony featured 1000 performers drawn from more than 80 schools - ranging from years one to 12.

The performance was a mix of Australian iconography and youthful energy, with the dulcet tones of Men At Work's Down Under followed by K-Pop sensation Psy's Gangnam Style as the Parade of Nations started proceedings.

Junior world cycling champion Kelsey Robson carried the Australian flag, rugby sevens player Charlotte Caslick was chosen to read the Festival Oath, while rower Alexander Hill lit the cauldron.

Susie O'Neill, chef de mission for the Australian team at the 2014 Youth Olympics, led a tribute to Chinese host city Nanjing as proceedings wrapped up.